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The Japanese Ministry of Finance is expanding its workforce to create tighter worldwide standards for digital currencies, notably fiat-pegged stablecoins.
Japan is stepping up its attempts to control digital currencies on a worldwide scale, with associated government agencies allegedly planning to increase staff in order to enforce tougher regulations.
Japanese regulators have expressed fresh concerns over the massive growth of the cryptocurrency market, particularly cautioning against stablecoins, Reuters reported on Friday.
Three Japanese officials allegedly stated that Tokyo is prepared to work with global financial regulators to establish tougher rules for private digital currencies, noting that G7 and G20 group authorities have advocated for stricter restrictions for fiat-pegged stablecoins.
“Japan can no longer leave things unattended with global developments over digital currencies moving so rapidly,” one official said.
According to the report, the Japanese Ministry of Finance is allegedly considering increasing staff to pursue its efforts to scrutinize the industry worldwide. The country’s Financial Services Agency (FSA) has reportedly already established a new unit to oversee digital currency regulation.
The new FSA section, which was established on July 8, seeks to monitor larger crypto markets and focus on decentralised finance, a blockchain-based type of financing that does not rely on centralised financial intermediaries, according to authorities.
The announcement comes as the crypto sector has recently received greater scrutiny from worldwide regulators. Many authorities, in particular, warn against stablecoins, a form of cryptocurrency that is tied to assets or fiat currencies such as the US dollar. Central banks throughout the globe have been pushing central bank digital currencies (CBDC), which are digital equivalents of national fiat currencies, in order to keep control over money.
U.S. Federal Reserve Chairman Jerome Powell stated on Wednesday that a CBDC in the United States would eliminate the need for private choices such as Bitcoin (BTC) and stablecoins. Last week, People’s Bank of China deputy governor Fan Yifei stated that the fast growth of private payment networks is “very alarming,” and that stablecoins represent a major danger to global financial and settlement institutions.